The printing cost of currency notes in Bangladesh has made a new record by spending over Tk 20,000 crore last year. It is increasing day by day. In last two years, the government has printed 47 percent more currency notes making a historical inflation. It means the present value of Tk 100 was Tk 53, before two years. If you buy a product by Tk 53 before two years, now you have to spent Tk 100 for buying the same products. Bangladesh Bank Governor Ahsan H. Mansur has emphasized the importance of increasing cashless transactions in Bangladesh. He said that increasing cashless transactions will increase revenue.
The governor made this statement at a high-level meeting of stakeholders, including the advisory council, held in Tejgaon, the capital, on Wednesday (October 8) under the chairmanship of Chief Advisor Dr. Muhammad Yunus.
Press Secretary Shafiqul Alam gave this information at a news briefing organized at the Foreign Service Academy on Bailey Road in the capital this afternoon.
Quoting the Governor of Bangladesh Bank, he said that due to the increase in cash flow, Tk 20,000 crore is spent on printing money every year. Ahsan H. Mansur commented that this cost will be reduced if cashless transactions are implemented.
The cost of printing currency varies significantly by country, with factors like denomination, security features, and raw material costs influencing the price.
For example, in 2025, a Bangladesh Bank report found it cost about Tk 5 to print a Tk 1,000 note and about Tk 1.5 for smaller denominations. The US Federal Reserve reported that printing costs for a single US dollar note were approximately 5.4 cents.
Country-Specific Examples
“ Bangladesh: A 2025 report by Bangladesh Bank indicated that printing a Tk 1,000 note cost Tk 5, while the cost for 10, 20, 50, 100, 200, and 500 Taka notes varied from approximately Tk 1.5 to Tk 4.70.
“ United States: According to the US Federal Reserve in 2017, the cost to produce a one or two dollar note was 5.4 cents, while a 20 dollar note cost 12.2 cents, and a 100 dollar note cost 15.5 cents.
“ Pakistan: In 2024, the State Bank of Pakistan spent 31.3 billion rupees on currency printing, with the cost of printing higher denomination notes like 5,000 and 1,000 rupee notes contributing significantly.
Factors Influencing Cost
“ Denomination: Higher value notes generally cost more to print due to their increased size, more complex security features, and higher quality materials.
“ Security Features: Modern security features, such as watermarks, security threads, and holographic elements, add to the production cost.
“ Raw Materials: The cost of paper, ink, and other raw materials, which may need to be imported, can impact printing expenses, as seen with Pakistan’s weaker rupee increasing costs.
“ Production Volume: The total annual cost of printing currency, including design, production, and distribution, can be substantial, as the Bangladesh Bank spends around 4 billion to 5 billion Taka annually on printing note
“ The traders and economists brought allegations of “contradictory” steps from the Bangladesh Bank at the policy level.
“ They alleged that the central bank has increased the interest rate to curb the inflation rate and at the same time it is supplying money to the government by printing.
“ Habibur Rahman, the chief economist of the central bank, however, disagreed with them saying that the allegation of printing banknotes is not true.
“ These contradictory statements were put forth at a seminar titled ‘An overall assessment of Bangladesh’s economy in six months from the private sector’s point of view’. Dhaka Chamber of Commerce and Industries (DCCI) organised the seminar at its Motijheel office.
“ Prime minister’s economic affairs adviser Mashiur Rahman was the chief guest at the event that was chaired by DCCI president Ashraf Ahmed.
“ Addressing the seminar, DCCI’s former president Shams Mahmud said the private sector entrepreneurs are currently not getting the necessary amount of money from the banks. On the one hand, the central bank has raised the interest rate to curb the inflation rate, on the other hand, the Bangladesh Bank is printing banknotes to meet the government’s requirements. This is contradictory.
“ Senior economist at Policy Research Institute (PRI), a private research organisation, Ashiqur Rahman said at the seminar that defaulted loans are affecting the country’s private sector in a negative way. More than 22 per cent of the country’s debt is problematic.
“ He further stated that no visible progress has been made in raising the tax-GDP ratio in the country in the last 15 years. This has exerted an additional pressure on the state treasury. Because of this, the government was given money by printing.
“ But Habibur Rahman, the chief economist of the Bangladesh Bank, contradicted the observations.
“ He said many were there talking about printing banknotes but they came up with totally wrong statements without knowing the truth. The matter of printing money could be known from the central bank’s balance sheet.
“ Habibur Rahman informed the seminar that the size of the central bank’s balance sheet in the last six months (July-December) grew to Tk 372,315 crore (over Tk 3.72 trillion), which is 2.03 per cent less than the same time of the preceding year. That means the amount of money released in the market is less than the amount entered the vault of the Bangladesh Bank. This has been done keeping conformity with the contractionary monetary policy. That means the allegation that money is being printed is not true, he asserted.
“ In his keynote, DCCI president Ashraf Ahmed said the reduction in the private sector’s contribution to GDP is worrying. Apart from this, it is essential to decrease the cost of doing business to increase local and foreign investment, ensuring uninterrupted availability of energy at an affordable price and developing the supply sector. Besides, there is a possibility of reduction in the flow of loan in the private sector because of the steps the central bank has taken to control the inflation rate. That is why it is essential to coordinate those, he added.
“ Bangladesh Institute of Development Studies (BIDS) research director Mohammad Yunus also addressed the seminar.
